By Mark Huffman
ConsumerAffairs.com
June 19, 2009
The price of gasoline is still going up, just not as fast as in recent weeks. The national average price of self-serve regular is $2.69 a gallon, up a nickel from last Friday, according to AAA.
The average price of gas was $2.33 a gallon a month ago, and is up 60 percent since the beginning of 2009, according to AAA.
California remains the only state where average gas prices have risen back over $3 a gallon. The California average price crossed that threshold Monday. Today the California average is $3.025 a gallon.
The most expensive gasoline in California is found in the San Francisco area, where the average price is $3.102 a gallon. The least expensive gas in the state is in Yuba City, where today's average price is $2.945.
The cheapest gas in the nation can be found in South Carolina, where today's average price is $2.509 a gallon.
The price of oil has been quickly rising over the last two months but this week, backed off its highs. Even so, its still trading above $70 a barrel. Andrew Delmege, AAA's manager of regulatory affairs, says oil prices soften this week mainly because the dollar gained strength.
As the dollar gains strength, investors sell more commodities which helps to moderate prices, he said. Many market analysts have anticipated that the dollar would begin strengthening its value. The overall health of the dollar will continue to be an important factor in oil price movement as the summer progresses.
In its weekly report, the U.S. Energy Information Administration said domestic gasoline inventories rose by 3.4 million barrels last week, a much larger than expected increase. It could reflect a dampening of demand, caused by the recent rise in prices at the pump.
Total U.S. petroleum demand is down six percent from year ago levels, while crude oil stockpiles are 57 percent higher than a year ago, when oil prices were nearing their peak.
U.S. refinery capacity remains at about 80 percent, where it has been all year. Most industry analysts see no shortage of oil or gas products. U.S. crude oil inventories were down by 3.9 million barrels this week, but supplies still total 358 million barrels.
